Ian Woodward's Investing Blog

Buy and Hold Type 4’s…Get Ready to Rumble!

Let’s not get too excited as the Jury is still out waiting for the bulk of the Earnings
Reports.  However, provided we do not have a meltdown, the slow signs of progress
in the Internals of the Market suggest that the Buy and Hold Type 4’s should get ready to rumble.  The key number on the S&P 500 is 960 and above!

Both Goog and IBM beat estimates so that bodes well for EPS Reports.  Tomorrow is Options Expiration.


Lets dispense with the Downside Scenario:

1.  If we break 870 to the downside, it’s curtains for the Type 4’s.  Be patient

2.  If we break 840, Type 3’s are long since gone and sitting on the sidelines

3.  If we break 800, you are a fool not to protect your 401-K…period


The Upside Scenario:

1.  We have arrested the Head and Shoulders Top…for now

2.  Type 3’s should be nibbling above 930, with tight stops

3.  Type 4’s still need clear signs that we are on our way again…get above 960

The Stakes in the Ground and the Measuring Rods:

a.  NYSE New Highs must stay above 100…it just reached 155 yesterday

b.  The Accumulation:Distribution ratio must get back above 1.2…it is at 1.0

c.  The 40 Week MA needs to turn up…it is currently flat, which is a good sign


up down



I hope it was worth waiting for.  Newsletter, Guests visiting, rotten cold, getting better.

Best Regards, Ian.

Copyright © 2007-2010 Ian Woodward
Disclaimer: Commentaries on this Blog are not to be construed as recommendations to buy or sell the market and/or specific securites. The consumer of the information is responsible for their own investment decisions.